24-Hour Money Lender Guide: Legal Personal Loans From Licensed Money Lenders In Singapore


Unexpected life events happen all the time – whether it’s a medical emergency, job loss, or family crisis. When they do, they can often leave us in a financial bind.

Suppose you need quick cash to tide you over until your next paycheck. In that case, consider taking out a personal loan from a licensed money lender, specifically a 24-hour money lender in Singapore.

In this article, we shall discuss what licensed money lenders do and how to differentiate them from unlicensed money lenders.

What Does A Licensed Money Lender Do?

Licensed money lenders in Singapore are financial institutions regulated by the Ministry of Law. Unlicensed money lenders are not regulated and hence operate illegally.

Licensed money lenders offer various services, including:

  • Providing fast cash loans to Singaporeans and permanent residents
  • Granting fast cash loans to foreigners who have valid employment passes

When applying for urgent loans in Singapore, it is a good idea to consider licensed money lenders because they provide quick loans and are often less stringent than traditional banks.

The primary benefit of licensed money lenders is that they are often willing to help those who are in a financial bind.

The hectic pace in Singapore means that you will have to settle your personal affairs during the weekends most of the time.

However, it can be tough if you intend to borrow from a bank as they are usually closed on weekends.

This means that in a super-urgent situation, you will need a 24-hr money lender, and that is where licensed Singapore money lenders come in to provide you with the financial assistance you need.

Where Can I Find 24-Hour Money Lenders In Singapore?

The good news is that there are licensed 24-hour money lenders Singapore that offer loan application services online 24/7. A good example is Katong Credit.

A fully licensed money lender, Katong Credit has a strong online presence and offers a wide range of loans at lower interest rates to suit your needs.

You can apply for a loan online anytime. It can be approved as quickly as within 24 hours.

Applying is a breeze because Katong Credit has synced its application process with Myinfo, which means your information is automatically pulled up and completed far more quickly than if you had keyed in the information manually.

How To Differentiate Between A Licensed Money Lender And An Unlicensed Money Lender

Since there are many money lenders in Singapore, it can be difficult to discern which are licensed and which are not.

Here are some ways you can differentiate between a licensed money lender and an unlicensed one:

The Loan Contract’s Terms And Conditions

A licensed money lender must clearly state the terms and conditions of the loan in the loan agreement.

This includes the interest rate, repayment method, repayment period, late payment fees, and other details concerning the loan.

An unlicensed money lender may not provide detailed information in the contract or may give misleading information.

It may even send you a PDF document through WhatsApp or ask you to pay the first month’s fee on SMS first before it disburses the loan.

This is an example of the illegal money lending tactics that unlicensed money lenders use, so do not fall into the trap.

The Money Lender’s Interest Rate And Late Repayment Rates

The maximum amount of interest a licensed moneylender is allowed to charge is 4% per month.

If a money lender charges a higher interest rate than this, it is most likely unlicensed.

Similarly, the late repayment rates for licensed money lenders are capped at 4% of the monthly outstanding loan amount, while unlicensed money lenders often charge much higher rates.

Advertising Channels Used

Licensed money lenders in Singapore are only allowed to advertise through the following media:

  1. At their office premises
  2. On their own websites

If you see a money lender advertising through other channels such as Facebook, Instagram, SMS, WhatsApp, or phone calls, they are most likely unlicensed. Avoid them at all costs.

Use Of Threats And Blackmailing

Licensed money lenders are not allowed to threaten or blackmail borrowers. If you are being blackmailed or threatened by your money lender, it is most likely unlicensed.

The Loan Amount You Can Borrow

In Singapore, the amount granted for an unsecured personal loan depends on your annual income. Here the income ranges.

Yearly IncomePermanent Residents and SingaporeansResiding Foreigners
Lower than $10,000$3,000$500
$10,000 to $20,000$3,000$3,000
$20,000 and above6x monthly income6x monthly income

If a money lender is offering you a quick cash loan amount above these limit set by the Ministry of Law, it is most likely unlicensed, and you should avoid it.

What Are The Signs Of A Loan Scam?

Illegal money lenders in Singapore target people who are in dire need of money. They often advertise their services online, promising low interest rates and easy repayment terms. However, several signs can help you identify an illegal money lender and loan scam.

Physical Address

A licensed money lender will have a physical address you must visit for a face-to-face verification of your identity and so that it can go through the loan contract’s terms with you. An illegal money lender will have a fake physical address or none at all.

Means Of Advertising

Licensed money lenders, including 24-hour lenders, advertise their services through legal channels such as their websites.

They will not send you SMSes or contact you through WhatsApp or email. So if you get such messages, it is likely a loan scam.

Fees And Interest Rates

Licensed 24-hour money lenders will never ask you to pay for anything upfront before your cash loan is approved.

Secondly, the interest rates they charge are regulated by the government. So be wary of any lender that asks for upfront fees or charges exorbitant interest rates.

Remote Application And Loan Disbursement

The increase in internet usage has made it possible for people to apply for loans online.

While this is a convenient option, you should be cautious of loan scammers who promise to disburse the loan without any physical contact.

It is important to remember that any legitimate loan will require you to sign a contract. So if you are asked to provide your personal information or bank account details without any physical meeting, it is likely a loan scam.

Guaranteed Approval

No licensed money lender in Singapore can guarantee that your loan application will be approved.

When processing your loan application, licensed money lenders will assess your creditworthiness and ability to repay the loan.

If you come across a money lender that guarantees approval, it is likely a loan scam.

How Much Can I Borrow?

The Monetary Authority of Singapore (MAS) is the central bank of Singapore. It is currently limiting citizens’ borrowing to 10 times their monthly income.

MAS aims to cool the property market and reduce household debt risks because it can negatively impact Singapore’s economy if not managed carefully.

What Are the Fees That Licensed Money Lenders Can Charge?

In Singapore, the Moneylender’s Act allows licensed money lenders to charge specific fees such as:

  • A maximum of 4% interest rate per month regardless of your amount of income and whether the loan is secured or not.
  • A maximum of 4% late interest rate per month if the borrower is late in repaying the loan amount. This can only be charged on the late amount, not the entire loan amount.
  • A maximum of $60 per month as a late payment fee if the borrower is late in paying the loan amount.
  • A maximum of 10% of the loan’s principal as administration fees.
  • A maximum of $100 as legal fees if the borrower defaults.

What Is A Credit Score?

A credit score is a number that lenders use to help them decide whether to give you credit or grant you the loan.

The scores range from 300 to 850. The higher your score, the more likely your loan will be approved.

The credit score is based on your credit history, which is a record of how you’ve handled debt in the past. The score predicts how likely you are to repay a new loan on time.

What Should I Do If A Licensed Money Lender Is Harassing Me?

If a licensed money lender is harassing you, you can do a few things to stop the harassment.

  • You can make a police report.
  • If you face difficulties in paying back your loan, you can request the money lender to give you more time or restructure your loan. You can also contact a debt counsellor for advice.
  • If you think the money lender has breached the Moneylenders Act or Regulations, you can complain to the Registry of Moneylenders.


Now that you know what licensed money lenders are, their fees and charges, and how to distinguish them from unlicensed money lenders, you are now in a better position to take a personal loan from a licensed money lender of your choice.

However, remember to always do your due diligence before signing on the dotted line. Check the terms and conditions of the contract carefully to avoid getting into debts that you may not be able to repay.